Sold out from under in Orleans

Thursday

Aug 30, 2012 at 2:00 AMAug 30, 2012 at 5:59 PM

The best intentions and the vocal support of the local Occupy movement couldn't stop Sandy Schaefer-Ung's home from being auctioned on Wednesday — but the South Orleans woman still holds out hope that a lawsuit will let her keep her home.

ROBERT GOLD

SOUTH ORLEANS — The best intentions and the vocal support of the local Occupy movement couldn't stop Sandy Schaefer-Ung's home from being auctioned on Wednesday — but the South Orleans woman still holds out hope that a lawsuit will let her keep her home.

On Wednesday afternoon, Schaefer-Ung sat in her front yard with freshly made sandwiches for her crowd of supporters.

A group of about 20 people marched in her driveway, opposing the scheduled auction of her foreclosed home.

"Banks got bailed out, we got sold out," chanted the group, which included several Occupy Cape Cod and Occupy Falmouth members.

"I'm so proud of them," Schaefer-Ung said, watching the group moments before the scheduled auction.

This was the third time the auction was scheduled since June at the 38 Tar Kiln Road property, with both other events postponed.

Schaefer-Ung's lawyer, Jamie Ranney of Nantucket, filed a lawsuit in Land Court earlier in the day, arguing that U.S. Bank couldn't prove it was the proper mortgagee.

In the filing, Schaefer-Ung "denies that U.S. Bank or any other respondent possesses or can establish a lawful and valid chain of title to any mortgage, note, or any other interests in the premises that may have been originally granted" by her.

Ranney said the promissory note he received was a photocopy which, he said, the line saying "pay to the order of" is blank.

According to a recent decision by the Massachusetts Supreme Judicial Court, the lender trying to foreclose must hold both the mortgage and promissory note, which is proof of the debt.

In this case, Homeward Residential manages the loan, which was assigned to U.S. Bank through Mortgage Electronic Registration Systems.

In public records, MERS is the nominal mortgage for this loan. In splitting and bundling loans as securities on the secondary market, MERS records and tracks the mortgage but allows the lender to retain or sell the note without recording the transfer in public records.

MERS' authority to reassign mortgages, some of which were "robo-signed" without review, has been challenged in court.

Schaefer-Ung's foreclosure fight was featured in the Times last month. She bought the house in 1999 and loaned out money to family members in need. Her combination of unpaid principal, interest and fees were more than $375,000.

Ranney faxed a letter Wednesday to Korde & Associates in Chelmsford, the law firm representing U.S. Bank, saying anyone representing the bank or the auction could not set foot on the property without permission.

Reached later in the day, a lawyer with Korde & Associates declined to comment.

The auctioneer from Bay State Auction, Robert Mullen, notified the crowd assembled, including potential bidders, that he was waiting for the Orleans police to show up before starting the auction. Police allowed him to stand in the driveway of Schaefer-Ung's driveway to conduct the auction.

Aside from a bid from the bank, the only other offer came from Schaefer-Ung's neighbors, Jeff and Gretel Norgeot. Their winning bid of about $260,000 came within a minute of the auction's start.

After the auction, a member of the Occupy movement briefly exchanged verbal jabs with the winning bidders.

The couple said they would expand their vegetable farm with the purchase. They declined to discuss the lawsuit filed by Ranney.

"I'm shocked, stunned and bewildered," Schaefer-Ung said when she learned about the Norgeots' bid. "I wouldn't think they would want to exploit my vulnerability."

Schaefer-Ung said she would continue to live in the house. "I don't regard it as over at all."

Ranney said the winning bidders could attempt to evict Schaefer-Ung after closing on the sale, but he doubted that would happen with an active lawsuit in Land Court.